*Pages 1--5 from Microsoft Word - 25377.doc* Federal Communications Commission DA 03- 561 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of ) ) CableSouth, Inc. ) File No. EB- 02- TS- 654 ) Operator of Cable Systems in the States of ) ) Alabama, Florida, Georgia, Louisiana, ) Mississippi and Texas ) ) Request for Waiver of Section 11. 11( a) of the ) Commission’s Rules ) ORDER Adopted: February 25, 2003 Released: March 3, 2003 By the Chief, Technical and Public Safety Division, Enforcement Bureau: 1. In this Order, we grant CableSouth, Inc. (“ CableSouth”) temporary waivers of Section 11.11( a) of the Commission’s Rules (“ Rules”) for 41 cable television systems in the six above- captioned states. Specifically, we grant a temporary, 12- month waiver of Section 11.11( a) one cable television system in West Atlanta, Georgia and temporary, 36- month waivers of Section 11. 11( a) for 40 cable television systems in the States of Alabama, Florida, Louisiana, Mississippi and Texas. Section 11.11( a) requires cable systems serving fewer than 5,000 subscribers from a headend to either provide national level Emergency Alert System (“ EAS”) messages on all programmed channels or install EAS equipment and provide a video interrupt and audio alert on all programmed channels and EAS audio and video messages on at least one programmed channel by October 1, 2002. 1 2. The Cable Act of 1992 added new Section 624( g) to the Communications Act of 1934 (“ Act”), which requires that cable systems be capable of providing EAS alerts to their subscribers. 2 In 1994, the Commission adopted rules requiring cable systems to participate in EAS. 3 In 1997, the Commission amended the EAS rules to provide financial relief for small cable systems. 4 The 1 47 C. F. R. § 11.11( a). 2 Cable Television Consumer Protection and Competition Act of 1992, Pub. L. No. 102- 385, § 16( b), 106 Stat. 1460, 1490 (1992). Section 624( g) provides that “each cable operator shall comply with such standards as the Commission shall prescribe to ensure that viewers of video programming on cable systems are afforded the same emergency information as is afforded by the emergency broadcasting system pursuant to Commission regulations ….” 47 U. S. C. § 544( g). 3 Amendment of Part 73, Subpart G, of the Commission’s Rules Regarding the Emergency Broadcast System, Report and Order and Further Notice of Proposed Rule Making, FO Docket Nos. 91- 171/ 91- 301, 10 FCC Rcd 1786 (1994) (“ First Report and Order”), reconsideration granted in part, denied in part, 10 FCC Rcd 11494 (1995). 4 Amendment of Part 73, Subpart G, of the Commission’s Rules Regarding the Emergency Broadcast System, 1 Federal Communications Commission DA 03- 561 2 Commission declined to exempt small cable systems from the EAS requirements, concluding that such an exemption would be inconsistent with the statutory mandate of Section 624( g). 5 However, the Commission extended the deadline for cable systems serving fewer than 10, 000 subscribers to begin complying with the EAS rules to October 1, 2002, and provided cable systems serving fewer than 5,000 subscribers the option of either providing national level EAS messages on all programmed channels or installing EAS equipment and providing a video interrupt and audio alert on all programmed channels and EAS audio and video messages on at least one programmed channel. 6 In addition, the Commission stated that it would grant waivers of the EAS rules to small cable systems on a case- by- case basis upon a showing of financial hardship. 7 The Commission indicated that waiver requests must contain at least the following information: (1) justification for the waiver, with reference to the particular rule sections for which a waiver is sought; (2) information about the financial status of the requesting entity, such as a balance sheet and income statement for the two previous years (audited, if possible); (3) the number of other entities that serve the requesting entity’s coverage area and that have or are expected to install EAS equipment; and (4) the likelihood (such as proximity or frequency) of hazardous risks to the requesting entity’s audience. 8 3. On September 20, 2002, CableSouth filed a request for waivers of Section 11.11( a) for 41 small, rural cable systems in the six captioned states. In support of its waiver request, CableSouth states that one cable system in West Atlanta, Georgia serves approximately 1,219 subscribers and 40 cable systems in the States of Alabama, Florida, Louisiana, Mississippi and Texas serve between 14 and 537 subscribers. Based on price quotes from EAS equipment manufacturers, CableSouth estimates that it would cost approximately $6,500 to install EAS equipment at each of these systems for a total cost of $266,500. CableSouth asserts that this cost will impose a substantial financial hardship on it and provides its financial statements for 2000 and 2001 in support of this assertion. In addition, CableSouth submits that its subscribers will continue to have ready access to national EAS information from other sources, including its cable systems. In this regard, CableSouth notes that its subscribers currently have access to national EAS messages on six or more programmed channels. CableSouth also asserts that its subscribers will have access to EAS information through over- the- air reception of broadcast television and radio stations. 4. Based upon our review of the financial data and other information submitted by CableSouth, we conclude that a temporary, 12- month waiver of Section 11.11( a) for one cable system in West Atlanta, Georgia is warranted, and temporary, 36- month waivers of Section 11.11( a) for 40 cable systems in Alabama, Florida, Louisiana, Mississippi and Texas are warranted. 9 In particular, we find that Second Report and Order, FO Docket Nos. 91- 171/ 91- 301, 12 FCC Rcd 15503 (1997) (“ Second Report and Order”). 5 Id. at 15512- 13. 6 Id. at 15516- 15518. 7 Id. at 15513. 8 Id. at 15513, n. 59. 9 The 12- month waivers will extend from October 1, 2002 October 1, 2003. The 36- month waivers will extend from October 1, 2002, until October 1, 2005. We clarify that the waivers we are granting also encompass the EAS testing and monitoring requirements. 2 Federal Communications Commission DA 03- 561 3 the estimated $266,500 cost of EAS equipment for these small cable systems could impose a financial hardship on CableSouth. 5. We note that the Commission recently amended the EAS rules to permit cable systems serving fewer than 5,000 subscribers to install FCC- certified decoder- only units, rather than both encoders and decoders, if such a device becomes available. 10 Based on comments from equipment manufacturers, we anticipate that such a decoder- only system could result in significant cost savings to small cable systems. 11 6. Accordingly, IT IS ORDERED that, pursuant to Sections 0.111, 0.204( b) and 0.311 of the Rules, 12 CableSouth, Inc. IS GRANTED a waiver of Section 11.11( a) of the Rules until October 1, 2003 for one cable television system listed in Attachment A and IS GRANTED a waiver of Section 11.11( a) of the Rules until October 1, 2005 for 40 cable television systems listed in Attachment A. 7. IT IS FURTHER ORDERED that CableSouth, Inc. place a copy of this waiver in its system files. 8. IT IS FURTHER ORDERED that a copy of this Order shall be sent by Certified Mail Return Receipt Requested to counsel for CableSouth, Inc., Rebecca H. Duke, Esq., Holland & Knight LLP, 2099 Pennsylvania Avenue, N. W., Suite 100, Washington, D. C. 20006- 6801. FEDERAL COMMUNICATIONS COMMISSION Joseph P. Casey Chief, Technical and Public Safety Division Enforcement Bureau 10 Amendment of Part 11 of the Commission’s Rules Regarding the Emergency Alert System, EB Docket 01- 66, FCC 02- 64 at ¶ 71 (released February 26, 2002). 11 One manufacturer estimated that an EAS decoder- only system can reduce the cost by 64% over what a cable operator would spend for an encoder/ decoder unit. Id. at ¶ 70. 12 47 C. F. R. §§ 0.111, 0. 204( b) and 0.311. 3 Federal Communications Commission DA 03- 561 4 Attachment A CableSouth, Inc. Cable Systems: Temporary Waiver Granted Until: Alabama Akron, Alabama October 1, 2005 Alabama Port, Alabama October 1, 2005 Atmore, Alabama October 1, 2005 Chatom, Alabama October 1, 2005 Gilbertown, Alabama October 1, 2005 Grand Bay, Alabama October 1, 2005 Leesburg, Alabama October 1, 2005 Maplesville, Alabama October 1, 2005 McCall, Alabama October 1, 2005 Millry, Alabama October 1, 2005 North Brewton, Alabama October 1, 2005 St. Elmo, Alabama October 1, 2005 Turnerville, Alabama October 1, 2005 Wilmer, Alabama October 1, 2005 Florida Bratt, Florida October 1, 2005 Georgia West Atlanta, Georgia October 1, 2003 Louisiana Cecilia, Louisiana October 1, 2005 Coteau Homes, Louisiana October 1, 2005 Egan, Louisiana October 1, 2005 Ethel, Louisiana October 1, 2005 Four Corners, Louisiana October 1, 2005 Forked Island, Louisiana October 1, 2005 Grand Lake, Louisiana October 1, 2005 Henry, Louisiana October 1, 2005 Mire, Louisiana October 1, 2005 Norwood/ Wilson, Louisiana October 1, 2005 Pecaniere, Louisiana October 1, 2005 Mississippi Centreville, Mississippi October 1, 2005 Franklin Creek, Mississippi October 1, 2005 Hancock, Mississippi October 1, 2005 Kiln, Mississippi October 1, 2005 Gloster, Mississippi October 1, 2005 4 Federal Communications Commission DA 03- 561 5 Cable Systems: Temporary Waiver Granted Until: Liberty, Mississippi October 1, 2005 Lucedale I, Mississippi October 1, 2005 Lucedale II, Mississippi October 1, 2005 Woodville, Mississippi October 1, 2005 Texas Campbell, Texas October 1, 2005 Cedar Creek, Texas October 1, 2005 Country Club Shore, Texas October 1, 2005 Harbor Point, Texas October 1, 2005 Seven Points, Texas October 1, 2005 5